BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 11 - BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The Company operates in five segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia, the fabrication segment (which provides fabrication services in Indonesia for the oil and gas industry) and the real estate segment in China.

The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired.

All inter-segment revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $91 and $399 for the three and six months ended December 31, 2012, respectively, as compared to $135 and $353 for the same periods in the last fiscal year.  Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the five segments. The following segment information table includes segment operating (loss) / income after including the Corporate expenses allocated to the segments, which gets eliminated in the consolidation.

The following segment information is unaudited for the six months ended December 31, 2012:

Business Segment Information:
	Six months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2012	$	8,371	$	(431	)	$	9,777	$	90	$	19
	2011		6,014		(580	)		10,385		108		8
Testing Services	2012		7,678		70			19,292		1,120		745
	2011		6,106		(1,142	)		19,892		1,125		1,117
Distribution	2012		684		84			378		2		1
	2011		403		9			198		2		--
Real Estate	2012		63		(121	)		4,161		54		--
	2011		95		(15	)		4,423		38		--
Fabrication	2012		302		(458	)		367		--		--
Services	2011		2,800		(465	)		1,699		92		7
Corporate &	2012		--		8			58		--		--
Unallocated	2011		--		(334	)		52		--		--
Total Company	2012	$	17,098	$	(848	)	$	34,033	$	1,266	$	765
	2011	$	15,418	$	(2,527	)	$	36,649	$	1,365	$	1,132

The following segment information is unaudited for the three months ended December 31, 2012:

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2012	$	3,079	$	(191	)	$	9,777	$	44	$	13
	2011		3,216		(265	)		10,385		51		4
Testing Services	2012		3,769		(34	)		19,292		569		78
	2011		2,815		(800	)		19,892		563		664
Distribution	2012		340		38			378		1		1
	2011		85		(12	)		198		1		--
Real Estate	2012		33		(57	)		4,161		27		--
	2011		48		(9	)		4,423		19		--
Fabrication	2012		130		(282	)		367		--		--
Services	2011		455		(278	)		1,699		45		1
Corporate &	2012		-		(60	)		58		--		--
Unallocated	2011		-		(242	)		52		--		--
Total Company	2012	$	7,351	$	(586	)	$	34,033	$	641	$	92
	2011	$	6,619	$	(1,606	)	$	36,649	$	679	$	669